The Government has approved a series of measures aimed at making the cost of rents to tenants who have been left in a vulnerable situation due to the state of alarm. How do these new measures affect tenants and landlords?
Am I the beneficiary of any help to pay the rent?
The new measures approved by the Government will be open to tenants who have become unemployed, who have suffered a Temporary Employment Regulation File (ERTE) or in the case of the self-employed, who have significantly reduced their turnover, as a consequence of the paralysis of the economy due to the state of alarm.
Can I defer payment of the fee?
Yes. The Government has established a moratorium for automatic payment of rent in the event that the owner of the home is a person or company with more than ten homes. The moratorium on payment will be prolonged during the state of alarm or as long as the tenant’s vulnerability remains, with a maximum of four months. Once this time has passed, the lessee must pay the debt, which will have a term of three years during which no interest or penalties may be imposed.
The Executive has made the difference between large funds and small landlords. The former forces them to postpone the quota automatically in cases of vulnerability. To do this, it gives the option to these large homeowners to establish a 50% rent deduction for vulnerable groups or to defer and restructure the debt within three years.
If the owner of the home is a small landlord, the tenant may request a deferment of payment of the fees and the landlord will have seven days to accept, reject or propose an alternative.
What if we don’t reach an agreement between the landlord and the tenant?
If no agreement is reached, the tenant can access the financing program to request a loan from the state-backed banks through the Official Credit Institute (ICO), which won’t have any cost to the applicant. It can be requested for an amount of up to six month’s rent and can be returned in a maximum of ten years.
What if the years go by and I can’t repay the credit?
The credits may be repaid within a period of six years, extendable to ten if necessary. But, in the event that the situation of vulnerability lengthens, the Executive may approve direct aid for victims of gender violence, homeless people and others who are especially vulnerable.
It is an aid of up to 600 euros per month, which can be raised in certain cases to 900 euros (the limit is 100% of the fee), for the payment of the rent and another 200 euros for supply costs to take care of the debt if the tenant has not economically recovered.
What happens if my rental agreement expires in the next few weeks?
Tenants in this situation will be able to stay in their homes, since the Government has established an automatic six-month extension for all rental contracts that are due to expire, that is, those whose completion takes place now or in the next three months. During the extension, the conditions of the contract will be maintained, so the landlord cannot raise the rent.
Can I be kicked out of my house?
No. If the tenant is in a vulnerable situation, he cannot be evicted while the state of alarm lasts and in the six months following.
If I am a small landlord, is my rent at risk?
No. The Government has launched the line of credit with the Official Credit Institute (ICO) to make sure that the tenants can pay the rent, so the small landlord will receive their income. This financing will have no commissions or interests, making it accessible to any tenant with financial problems due to this crisis.
This information has been taken from articles published on the internet, compiled by Juan Antonio Rodríguez and translated by Bethan Trebilcock and David Fisher